Economy Moldova
Economy - overview:
Moldova remains one of the poorest countries in Europe despite
recent progress from its small economic base. It enjoys a favorable
climate and good farmland but has no major mineral deposits. As a
result, the economy depends heavily on agriculture, featuring
fruits, vegetables, wine, and tobacco. Moldova must import almost
all of its energy supplies. Energy shortages contributed to sharp
production declines after the breakup of the Soviet Union in
December 1991. As part of an ambitious reform effort after
independence, Moldova introduced a convertible currency, freed
prices, stopped issuing preferential credits to state enterprises,
backed steady land privatization, removed export controls, and freed
interest rates. The government entered into agreements with the
World Bank and the IMF to promote growth and reduce poverty. The
economy returned to positive growth in 2000, and has remained at or
above 6% every year since. Further reforms will come slowly because
of strong political forces backing government controls. The economy
remains vulnerable to higher fuel prices, poor agricultural weather,
and the skepticism of foreign investors.
GDP (purchasing power parity):
$8.41 billion (2005 est.)
GDP (official exchange rate):
$2.416 billion (2005 est.)
GDP - real growth rate:
7.1% (2005 est.)
GDP - per capita (PPP):
$1,900 (2005 est.)
GDP - composition by sector: agriculture: 21.3% industry: 23.3% services: 55.5% (2005 est.)
Labor force: 1.34 million (2005 est.)
Labor force - by occupation: agriculture: 40% industry: 14% services: 46% (1998)
Unemployment rate:
8%; note - roughly 25% of working age Moldovans are employed abroad
(2002 est.)